1

INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Cathlina Esclamado
NetID cesc792
Group Number: 114
Website Link: http://2014s2group114.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Helen Tuesday 1 pm
Time Spent on
Assignment:
32 hours Word Count: 1569

2


2
SMART SHOP
INTRODUCTION
The inefficiencies of traditional shopping methods have cause a shift from traditional brick-
and-mortar retailers to the more convenient and quick online shopping. Retail stores are
not adapting, causing the closure of stores worldwide. Smart Shop is a new, innovative
shopping experience that that uses scanning technology to identify your exact body
measurements. After storing and processing this information it produces all the possible
clothing/shoe options on a touch screen mirror. You can then dress yourself up like a
characeter on Sims. Everything from browsing to payment is done in a changing room and
you also get the added benefit of seeing how the clothes fit on you a benefit impossible
with online shopping. Smart Shop should make shopping convenient, easy and fun giving
retailers a competitive advantage over their online counterparts.

3. BUSINESS SECTION
3.1 Vision
To assist businesses struggling to adapt and compete in a changing world driven by e-
commerce, by delivering innovative technologies that offer a competitive advantage.
3.2 Industry Analysis: Technology and process solutions industry
Industry: Technology development and process solutions industry
Force: High/Low:
Justification:
Buyer
power:
High
Retailers that want to improve efficiencies in their business
processes can choose from a numerous amount of companies such
as IBM and HP which offer technology development and process
solutions therefore buyer power is high.
Supplier
power:
Low
With technology increasingly being an import part of modern day life
suppliers can be found all around the world and at competitive
prices.Companies in the technology and process solutions industry
have many choices when it comes to finding suppliers for their
products, therefore supplier power is low.

3


3
Threat of
substitutes:
Low
With traditional retail shopping already at a rapid decline most
retailers have no choice but to enlist the help of technology and
processs solutions to make their business processes better.
Technology and information systems are a competitive necessity in
every industry and thus there are little to no substitutes for it.
Threat of
new
entrants:
Low
Technology and process solutions companies spend years, millions
of dollars and the knowledge of staff from many different sectors of
the workforce from technology development to enterprise
architechts to engineers. There are also so many companies
developing new technologies that a new company with an
unestablished reputation is highly likely to fail. There are
significantly high entry barriers for this industry therefore threat of
new entrants is low.
Rivalry
among
existing
competitors:
High
Technology is rapidly changing and technology developers which
focus on business process solutions are highly competitive in
constantly creating new and innovative technologies to satisfy
customer needs and remain relevant in the industry, so rilvary and
competition is very fierce.
Overall attractiveness of the industry: The technology development and process solutions
industry is fairly attractive with 3 of the 5 forces being low. Although buyer power and
rivalry is high, when a company is innovative and constantly creating new products and
technologies to differentiate themselves from other companies, they can gain a significant
competitive advantage and be very successful in the industry.

3.3 Customers and Their Needs

Smart Shops target customers are all traditional retail clothing stores looking to improve
process efficiencies in stores and compete against e-commerce to remain relevant in the
rapidly changing technological world.

3.4 The Product and Service
Smart Shop will improve productivity and process efficiencies as staff no longer need to
return tried clothes or exchange items that are the wrong size. More changing rooms can be
established with the extra space and since payments can be made in the changing room
there will be no lines for the changing room or the checkout. This will improve customer
satisfaction significantly, as stores will be less cluttered, there will be no need to hunt for
your size and the clothes bought will be brand new and untried by other people therefore

4


4
solving the causes of why online shopping has grown substantially. The experience of
dressing yourself up virtually with clothes you can actually purchase is fun and easy,
providing a competitive advantage against online shopping for the stores with Smart Shop.
3.5 Suppliers and Partners
Suppliers:
1. Scanning equipment manufacturers need to supply full body scanners that are used
in the changing rooms to capture measurements. Scanners should prove a 360
o
scan
to achieve the most accurate measurements.
2. Touch screen suppliers provide large touch screens that display the shoppers image
and clothing options. The touch screens would be similar to an iPad but on a larger
scale.
Partners:
1. Smart Shop needs to partner with all major banks/EFTPOS payment systems to
enable customers to pay through the changing room payment system.
2. Smart Shop can partner with shopping malls who can advertise the Smart Shop
system to retailers currently renting space in their malls.
3.6 Strategy: Focused High Cost strategy
Smart Shop specifically targets clothing retailers in a traditional brick and mortar setting
therefore its competitive scope is focused.
The cost strategy is high cost because Smart Shop would cost a lot of money to install,
implement and maintain. Since it is technology based it will also need to be continually
upgraded.
The overall strategy is therefore Focused High Cost




5


5
3.7 Value Chain Acti vi ty: Deliver the product/service
The most important value chain activity for this business is delivering the product/service.
Smart Shops vision is to assist businesses struggling to adapt and compete in a changing
world driven by e-commerce, by delivering innovative technologies that offer a competitive
advantage. These goals are only achieved when the retailer and retailers customers can
actually physically use the Smart Shop system in store. This means the most important value
chain activity would be the delivering of the product/service, as all preceding acitivities are
of no use until the product is ordered, delivered and installed in the store and used. Since
its strategy is focused high cost, the product/service Smart Shop delivers should satisfy
customers specific needs because they are catering for a narrow market and their
customers are paying a high amount of money for Smart Shop.
3.8 Business Processes
3.8.1. ORDER-TO-DELIVERY PROCESS
This process is important as the ordering process is the first interaction customers have with
the business. It is important that this process is efficient in enabling the business to meet
the customers specifications in a timely manner.






6


6


























7


7


2.8.2. INSTALLATION PROCESS
The installation process is an important process in the organisation as its vision cannot be
achieved unless the product is installed in-store and used by the retailer and their
customers. It is important that the Smart Shop system components are properly installed
and tested so customers can use it without problems.

















8


8


3.9 Functionalities
3.9.1. ORDER-TO-DELIVERY PROCESS
Record customer orders
Check customer credit
3.9.2. INSTALLATION PROCESS
Collaborate Smart Shop system with existing store database
Records complete transactions and any queries/concerns of the customer
3.10 Systems
3.10.1. ORDER PROCESSING SYSTEM
This system records customer orders and the status of the order in a central system
allowing the ease of information flow/access to different departments, preventing
duplication or mistatements in the information which could lead to errors. This makes the
order-to-delivery process more efficient thus enabling the business to serve their customers
in a timely manner. This supports their vision to assist struggling businesses as the faster the
Smart Shop system can be delivered and installed, the faster the organisations customers
(the retailers) can gain the competitive advantage it brings.
3.10.2. DATABASE INTEGRATION SYSTEM
This system collaborates Smart Shop system (changing room equipement and software
system) with existing store database. This means all 3 functions are integrated and
information can flow between them. This is important in supporting the organizations
vision as the Smart Shop system will not work unless all 3 functions are working in tandem.
The 3 functions work together to create the Smart Shop system which is aimed to assist
businesses struggling to adapt and compete in the changing world driven by e-commerce. It
will provide the retail stores customers with a new shopping experience therefore offering
a first-mover advantage to the stores using Smart Shop.
3.10.3. ORDER FULFILLEMENT SYSTEM -
This system records completed transactions and any queries/concerns of the customer. This
supports the organisations vision as completed orders means the Smart Shop product is
being used by customers and their customers. It is important that customer

9


9
queries/concerns are recorded so that the organisation maintains a close relationship with
them so they can further develop the product so they can continue assisting businesses
struggling to adapt and compete in the changing world driven by e-commerce.

10


10
3.11. Summary Tabl e: Value Chain to Systems

Value Chain
Activity
Processes Functionalities Specific Information
System(s)
Broad Information
System(s)

Delivering the
product/service
1. Order-to-
delivery
process


1. Record customer orders

2. Check customer credit

Order processing system



Credit checking system


ERP system


TPS

2. Installation
process

1. Collaborate Smart Shop system with
existing store database.

2. Records complete transactions and
any queries/concerns of the customer

Database integration
system


Order fullfilment system
ERP system


CRM system

11

11
CONCLUSION
Smart Shop aims to assist businesses struggling to adapt and compete in a changing world
driven by e-commerce, by delivering innovative technologies that offer a competitive
advantage. The use of information systems and technology in the organization enables
them to efficiently serve their customers in a timely manner by integrating all information
sources in one system. It also makes the Smart Shop product they offer their customer
covenient to implement and use which benefits the organization, their customer and their
customers customers.
REFERENCES

Jason Perlow (E-commerce will make the shopping mall a retail wasteland,
2013). Retrieved from http://www.zdnet.com/e-commerce-will-make-the-shopping-
mall-a-retail-wasteland-7000009960/

Ian MacKenzie, Chris Meyer and Steve Noble (How retailers can keep up with
consumers, 2013). Retrived from
http://www.mckinsey.com/insights/consumer_and_retail/how_retailers_can_keep_
up_with_consumers

Five Forces references:
IBM industries. Retrived from http://www-
935.ibm.com/industries/retail/shopping_experience.html
HP industries. Retrived from http://www8.hp.com/us/en/industries/retail-
consumer-goods.html?compURI=1091470#.VDM0JymSzBc
CIO Review (20 Most Promising Retail Technology Solution companies, 2013).
Retrived from http://www.cioreview.com/magazine/20-Most-Promising-Retail-
Technology-Solutions-Companies-of-2013-DCMQ543601524.html
Chelsey Bauer ( Porters 5 Forces Model, 2013). Retrived from
https://sites.google.com/site/computerindustryadmn703/home/porter-s-five-
forces-model
Apple (Supplier list, 2014) https://www.apple.com/supplier-
responsibility/pdf/Apple_Supplier_List_2014.pdf
Ian MacKenzie, Chris Meyer and Steve Noble (How retailers can keep up with
consumers, 2013). Retrived from
http://www.mckinsey.com/insights/consumer_and_retail/how_retailers_can_keep_
up_with_consumers